1.2.1 demand

Question 1

1.2.1

what is demand?

Answer 1

is the amount of a good that consumers are willing and able to buy at a give price

Question 2

1.2.1

what factors affect demand?

Answer 2

• changes in consumer incomes
• substitute + complementary goods
• demographics
• external shocks
• trends

Question 3

1.2.1

how can you show the relationship between price and quantity demanded?

Answer 3

using a demand curve

Question 4

1.2.1

as price falls quantity demanded _____?

Answer 4

as price falls quantity demanded rises

Question 5

1.2.1

as price rises quantity demanded ______?

Answer 5

as price rises quantity demanded falls

Question 6

1.2.1

how is an increase in demand shown on a diagram?

Answer 6

an increase in demand is shown by a shift to the right

Question 7

1.2.1

how is a decrease in demand shown on a diagram?

Answer 7

a decrease in demand is shown by a shift to the left

Question 8

1.2.1

what three types of goods are there?

Answer 8

• necessities
• luxuries
• inferior goods